Psychemedics Corporation (PMD) has reported a 240.04 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2.71 million, or $0.49 a share in the quarter, compared with $0.80 million, or $0.15 a share for the same period last year.
Revenue during the quarter surged 67.26 percent to $11.85 million from $7.08 million in the previous year period. Gross margin for the quarter expanded 1117 basis points over the previous year period to 59.96 percent. Total expenses were 65.36 percent of quarterly revenues, down from 92.22 percent for the same period last year. This has led to an improvement of 2686 basis points in operating margin to 34.64 percent.
Operating income for the quarter was $4.10 million, compared with $0.55 million in the previous year period.
Raymond C. Kubacki, chairman and chief executive officer, said, "For the second quarter in a row, we had record sales and earnings for any quarter in the Company's history. The growth has been driven by our international business, specifically professional driver testing in Brazil.
Working capital increases
Psychemedics Corporation has recorded an increase in the working capital over the last year. It stood at $6.69 million as at Sep. 30, 2016, up 14.46 percent or $0.84 million from $5.84 million on Sep. 30, 2015. Current ratio was at 2.22 as on Sep. 30, 2016, down from 2.60 on Sep. 30, 2015.
Days sales outstanding went down to 43 days for the quarter compared with 69 days for the same period last year.
At the same time, days payable outstanding went up to 17 days for the quarter from 16 for the same period last year.
Debt comes down
Psychemedics Corporation has recorded a decline in total debt over the last one year. It stood at $5.23 million as on Sep. 30, 2016, down 17.01 percent or $1.07 million from $6.30 million on Sep. 30, 2015. Total debt was 20.16 percent of total assets as on Sep. 30, 2016, compared with 26.99 percent on Sep. 30, 2015. Debt to equity ratio was at 0.38 as on Sep. 30, 2016, down from 0.52 as on Sep. 30, 2015. Interest coverage ratio improved to 121.05 for the quarter from 18.12 for the same period last year.
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